With interest rates at a historically low level buying property has never seemed so attractive. But is it a good idea and how exactly do you know when the time is right? The old adage ‘it’s time in the market, not timing the market’ might always ring true, but when it comes to consumer confidence the figures tell us most of us think ‘now’ is the right time.
In fact, almost two thirds of Australians believe now is a good time to be buying residential property according to a Housing Sentiment Survey by CoreLogic and TEG Rewards which was released last month.
According to the survey of 2432 residents, 64 per cent thought it was a good time to purchase a property which was up 60 per cent from last year. However, when it comes to the actual property market in Australia, the same proportion of people believe our market is vulnerable to a significant correction. Interestingly, more than half the Sydney residents surveyed felt it was still a good time to buy, despite growing affordability constraints in that capital city.
Regions where values have peaked and shown a downturn are where the respondents are most confident. Approximately 80 per cent of respondents in Perth, regional Western Australia and Northern Territory indicated that it was a good time to buy.
According to the findings, majority of respondents expect dwelling values to remain steady over the next 12-month period, with Tasmanians the most optimistic about value growth.
Nationally, 38 per cent said they are expecting dwelling values to rise over the next year, which is in contract with last year’s survey which found 45 per cent of respondents thought values would rise, indicating that expectations on capital gains over the next financial year have softened.
Nationally, almost equal numbers of respondents said that weekly rental prices would either rise or remain stable over the coming 12-month period, however the survey showed some considerable variations across the regions in relation to rental price confidence.
Do you think now is a good time to buy property? Why or why not? We’d love to hear your thoughts, please leave a comment below.
Remember, if you’re looking to buy property, get in touch with us here at JDL Strategies and let our research team find a suitable investment for you and your family!